Wednesday, 24 October 2018 | 03:07 WIB

US$300 Million Automotive Steel Industry Operates in Cilegon

US$300 Million Automotive Steel Industry Operates in Cilegon

JAKARTA NNC - Galvanizing, Annealing and Processing Line Plant (GAPL) of PT Krakatau Nippon Steel Sumikin (IDX:KNSS) officially operates today in Cilegon, Banten.

The US$300 million plant further strengthens the steel industry's manufacturing structure in Indonesia.

The plant not only supplies the construction sector, but the national steel industry has also been able to meet the needs of the automotive sector. This step is believed to be able to push the domestic steel industry into a sector that will be taken into account by the world stage through technological capabilities.

"Most vehicle manufacturers in Indonesia have been using steel and local components. This has also spurred optimization of domestic content levels," said Director General of Metal Industry, Machinery, Transport Equipment and Electronics (ILMATE) of Ministry of Industry, Harjanto in press release, Tuesday (8/7/2018).

According to Harjanto, steel products that are quite widely used in the automotive sector are types of Hot Rolled Steel Coil (HRC), Cold Rolled Steel Coil (CRC), and Galvanized Steel. For this reason, with the operation of the IDX:KNSS’ plant, which will produce CRC and Galvanized Steel with a capacity of 480,000 tons per year, is expected to continue to reduce similar imported products.

"The existence of this plant will provide positive benefits and impacts on the national economy through saving foreign exchange from import substitution, increasing tax revenues, as well as the use of raw materials and local labor. In addition, encouraging the development and strengthening of downstream industries in the country," he explained.